KLCI Stock - GAB / 3255 - 2010 Quarter 4

Market Cap : 302098000*8.22 = 2,483,245,560 (Large)
NTA per share : (470928-10434)/302098 = 1.52
P/BV : 8.22/1.52 = 5.4079
Forecast P/E now : (8.22-0.45)/0.5307 = 14.64 (High)
ROE : 32.42% (High)
DY : 0.45/8.22*100 = 5.47% (Moderate)
Fixed Asset Turnover(4 year) : (2.0506+1.9894+1.9161+1.9075)/4 = 1.9656 (High)
Liquidity Ratio : 422885/159788 = 2.6465 (Moderate)
Receivables Collection Period : (196135+176777)/2/(1358633/365) = 50 days (Acceptable)
My Target Price : 7.43+0.45 = 7.88 (PE 14, EPS 0.5304, DPS 0.45)
My Decision : NOT BUY (unless price below 7.3)
My Comment : Revenue and profit increasing in term of comparing current quarter with preceding year corresponding quarter, good cash flow, below moderate debt and decreasing, navps increasing, company taxation either increase or remain
Technical Support Price : 7.7, 7.2
Risk Rating : MODERATE
OSK Target Price : 7.35 (05 Aug 10)

My notes based on 2010 quarter 4 report (number in '000):-
- Group revenue for the fourth quarter increased by 11.7% as compared to corresponding quarter last year
- Group profit before tax for the fourth quarter was higher by 26.3% as compared to the corresponding quarter 2009. This is mainly contributed from higher sales generated from the commercial activities during the 2010 FIFA World Cup season
- Group revenue for the current quarter grew by 5.7% as compared to preceding year corresponding quarter as a result of continued investment in building brands and commercial partnerships and this contribute profit before tax increased by 7.2%
- Group revenue for the current quarter was lower by 16.7% and profit lower by 23.2% when compared to the preceding quarter. This was principally due to higher sales generated from Chinese New Year festive sales in preceding quarter
- Estimate next 4Q eps after 2010 Q4 result announced = 0.5054*1.05 = 0.5307 (5% grow from 0.5054, due to next year no more world cup), estimate PE on current price 8.22 = 14.64(DPS 0.45)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.517 (10% grow from 0.47), estimate highest/lowest PE = 14.99/12.55 (DPS 0.41)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.517, estimate highest/lowest PE = 13.17/12.13 (DPS 0.41)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.47, estimate highest/lowest PE = 15.23/13.17 (DPS 0.41)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.47, estimate highest/lowest PE = 15.47/12.9.6 (DPS 0.41)

GAB latest news (English)

GAB Latest news from Sin Chew (Chinese)